Session 8

Question 1

Cost Transparency

Answer 1

people are more aware and knowledgeable

Question 2

Direct impacts of cost transparency

Answer 2

low profits (AT&T vs. sprint)
services & products as commodities (ameritrade, e-trade vs merrill lynch)
customer loyalty (P&G)
reputation damage by price unfairness

Question 3

Cost transparency Why

Answer 3

information (price, features, & quality)
brand premium
more rational shopping
different objective for new market entrant

** exception: online price may be higher anonymity

Question 4

what are information goods

Answer 4

information based (movie, record, book, research paper)
big fixed cost (average major studio $100m)
small/negligible variable cost (average cost= break-even price)
varied marketing/inventory/delivery costs
easy versioning and pricing

Question 5

mobility & coustomization

Answer 5

location 
heading
speed of movement 
transportation 
traffic conditions
events in the area
urgency, purpose, mood, weather & road conditions

Question 6

M-Commerce Services

Answer 6

location based services
banking & financial services
mobile display advertising
games & entertainment